It surprises people on twitter when they start a big passionate argument about why my trade is wrong and I just say, well if I am wrong I will stop out with a small loss. No big deal just one of my next 100 trades. Many have trouble even comprehending this concept. If you are managing risk through proper position sizing what is the big deal about one losing trade? If you are an active trader taking many trades over days, weeks, and years then you will have losers and what is the big deal about which ones are losers and which are winners? I do not understand all these endless debates and emotional engagement in a single trade idea. The key to my profits over the long term were not my win/loss ratios it was my risk/reward ratios. I have had big percentage wins in trending and swinging markets and treaded water about even in down trends. Sometimes it takes me a few stop outs to get my entry spot. I just do not understand all the passion behind one trade, the emotional attachment to an unknown future all seems exhausting to me. There just trades.
Guessing what will happen with price in a nonexistent future is predictive technical analysis. Reacting to price support and resistance levels, technical trading signals, chart patterns, and using moving average systems is reactive technical analysis.
My indicators are price action, moving averages, chart patterns, stop losses, and breakouts not crystal balls.
“Trade What’s Happening…Not What You Think Is Gonna Happen.” -Doug Gregory